At Vesper Realty, we often meet entrepreneurs at an early stage of their office search who are unsure how to proceed. They ask: Should I look for business property for sale near me or commercial lease space near me?
Both decisions represent a significant financial investment. Our team is dedicated to helping business owners understand the pros and cons of both strategies so you can make the best decision for your business needs.
Pros of business property for rent near me
Business owners embrace the possibility to secure office space without needing to commit to the purchase.
For small businesses aiming at high-end areas, renting office space is the most cost-effective option to reach out to your audience without putting your finances at risk.
Your monthly rental costs are fully tax-deductible. You can also deduct additional lease costs from your taxes, making it more manageable to start a business.
Most lease contracts are open to negotiations, during which you can agree with your future landlord on costs and responsibilities. We, at Vesper Realty, are familiar with this process and act as an intermediary between the tenant and the landlord. We help both parties reach a mutually favorable agreement and complete the transaction. A landlord can be responsible for the costs of repair, maintenance, insurance, and utilities, for instance, depending on the agreement you negotiate.
If you are planning to buy office space in the future, you can use the lease as an opportunity to understand the many aspects of property management and commercial costs.
However, leasing means you can’t build equity. Besides, your lease rental costs can vary depending on your payment agreements, making it more difficult to budget for new businesses. Additionally, the rent is likely to increase on renewal if your office space is in a high-demand neighborhood.
Pros of business property for sale near me
When you own the premises, you can brand and expand them as you wish. You don’t need to worry about discussing major alterations with your landlord. You are in charge!
Owning your commercial property means that you are in full control of the charges. Your mortgages payments remain constant, month after month, with no renewal increase. While you can’t deduct your whole monthly cost, your mortgage interest costs are tax-deductible. It is worth mentioning that you can gradually write off your property’s value through building depreciation deductions following the IRS publication.
If the premises are too big for your company, you can increase cash flow by renting out space to other businesses. At Vesper Realty, we are happy to help you manage your property. Some lease agreements allow the business to sublease their space, but it isn’t always an option.
You can build equity, which can be used as financial collateral to finance your business expansion or tackle other objectives.
However, you need to make a down payment that can be anywhere from 10% to 30% of the price value. As such, buying is not always a suitable option for small and new businesses.
Not sure whether you should lease or buy your office space? Feel free to reach out to our team of specialists at 586-228-3177. We are proud to go above and beyond for our clients in Metro Detroit, Michigan, and surrounding areas. We are happy to help you understand the best options for your business growth and financial situation.
Reliable, available every day, and dedicated to exceeding your expectations, you can count on us at Vesper Realty to move your business forward!